line decor
  
line decor
 
 
 
 

 
 
Legal News

New Orleans Firefighters: A Civil District Court judge handed New Orleans firefighters another victory in their long-running dispute with the city about how much they should be paid, saying they are entitled to both city and state longevity raises. The City implemented what it called "pay raises" which resulted in lower pay for the firefighters. New Orleans Firefighters Local 632 v. City of New Orleans et al (March 2, 2007).

Subcontracting Arbitration: The U.S. Fifth Circuit Court of Appeals overturned the district court and held that an employer could not subcontract out all maintenance. The employer had purchased the facility, recognized the Union and assumed the labor contract. The court concluded that the Arbitrator properly considered longstanding past practice under the contract with the prior employer and the terms of the contract in reaching an award. Resolution Performance Products v. PACE Local 4-1201 (March 6, 2007).

Retiree Health Benefits: A labor arbitrator affirmed the right of Medicare-eligible workers to have full post-retirement health care contributions made in their behalf by their employer. The Company had unilaterally reduced the contributions. Steelworkers Local 13-750 and Motiva Enterprises (December 29, 2006).

Firefighter Pay: A judge has held that the City of Lafayette violated Louisiana law by unilaterally reducing firefighter pay through passage of an ordinance, in an attempt to lower overtime costs. The court stated that "pure motives are not a defense if the statute is an illegal infringement on the Legislatures powers reserved to it by the Constitution. " Lafayette Professional Firefighters v. City-Parish of Lafayette (Nov. 21, 2006).

A judge in Houma, Louisiana finds that the City of Houma has violated state law by requiring that a firefighter forfeit sick or vacation leave when a firefighter is scheduled for a "swing day" during a pay period; that is, when an employee has a scheduled day off during a pay period. The Court also found that district chiefs were entitled to overtime for hours worked in excess of 144 in a 19 day work cycle, under Louisiana law. Houma Firefighters Local 1405 v. Terrebonne Parish Consolidated Government. (November 8, 2006).

Labor Arbitrations: An employee who used a knife in the operational aspects of his employment and was discharged for allegedly making threatening gestures with the knife towards a co-worker was reinstated to employment by an arbitrator, in a case handled by RUSPC . The arbitrator found that the employee made improper statements that warranted a two week suspension, but did not use the knife in a threatening manner. Shell Chemical and Steelworkers Local 750 (Nov. 21, 2006).

An employer which temporarily awarded a higher paying job to an employee with no prior experience, and then a year later permanently awarded the job to the employee after a bidding process, was found to have acted in bad faith and the job award was overturned. The arbitrator directed that the job be rebid and that the employee's prior experience not be considered. Valley Electric Co-op and IBEW Local 194 (October 19, 2006).

Emotional Distress Damages Not Taxable: A federal appeals court has held that it is unconstitutional for the IRS to tax damages for emotional distress related to loss of income. The ruling occurred in an employment case, where an employee claimed she was wrongly discharged under a "whistle blower" statute. Murphy v. IRS (August 22, 2006).

Overtime for Commissioned Workers: A federal judge has ruled that the draws that financial advisors receive monthly could not qualify as a guaranteed salary and that brokers, as salespeople, are not covered by the FLSA's administrative exemption for overtime wages. The court reasoned that the draw acts as a loan, not as a salary, because if brokers failed to earn sufficient commissions in a particular month to cover the draw, the deficit is carried forward and deducted from commissions in subsequent months. Takacs v. A.G. Edwards & Sons, Inc. (July 31, 2006).

Pension Law Reform: The Pension Protection Act of 2006 was approved by Congress. This 900 page law addresses underfunding of defined benefit pension plans. Among other things, underfunded pension plans may have to provide special notices to participants of the underfunding, develop funding plans, and freeze or reduce benefits until the under funding is cured. The House/Senate Conference report can be viewed here. The entire law is available here in pdf or in linked text here.

Union Contract Negotiations: In a case handled by RUSPC before the National Labor Relations Board, the NLRB has upheld an administrative law judge and ordered New Orleans stevedore Coastal Cargo to rescind changes in working conditions never agreed to by the union. Coastal contended that the parties had reached impasse, but the judge found otherwise, saying Coastal had not engaged in meaningful bargaining. Coastal Cargo and Teamsters Local 270 (June 30, 2006).

Firefighter Wrongful Discharge: RUSPC successfully defended a New Orleans firefighter charged with violating NOFD rules prohibiting conduct unbecoming an officer while off duty.  The fire captain was reported to have used crude language toward a casino slot attendant.  The court held that off-duty conduct must have a “link” to the workplace. Beba v. Department of FIre (May 31, 2006).

Labor Arbitration: A longshoreman who was harassed by his foreman and was under controlled medication, was wrongly discharged by his employer and reinstated with full back pay by a labor arbitrator. The arbitrator held that the employer's reasons for discharge did not withstand scrutiny. RUSPC represented the union in this matter. Coastal Cargo and Teamsters Local 270 (September 29, 2006).

Family and Medical Leave Act: A fire battalion chief was unlawfully discharged in violation of the FMLA. The employee's wife, who had bronchitis and chronic back problems, experienced a serious health condition for which FMLA leave is allowed. The court held that the fire department's failure to explain what additional medical information was needed in order to support his claim for leave harmed the employee and affirmed the entitlement to back pay. Lubke v. City of Arlington (5th Cir. June 30, 2006).

Union Membership: The National Labor Relations Board asserted jurisdiction over passenger and baggage screeners employed by a private screening company at one of the five airports in which screeners are not federally employed. The employer argued that the NLRB is statutorily barred from asserting jurisdiction, citing a Defense Department memo that screeners not be entitled to be represented or engage in bargaining "in light of their critical national security responsibilities," By a 4-1 vote, the Board rejected these arguments. Firstline Transp. Sec. Inc., 347 N.L.R.B. No. 40, 6/28/06).

Title VII & Retaliation: In a victory for employees, a unanimous U.S. Supreme Court broadened the definition of retaliation under Title VII of the 1964 Civil Rights Act to prohibit acts that are "materially adverse" to a reasonable employee, including transfers or suspensions that do not result in a loss of pay, benefits, or privileges. Burlington N. & Santa Fe Ry. Co. v. White, (June 22, 2006).

Multiemployer Benefit Funds: The U.S. Court of Appeals for the Eighth Circuit held that federal labor law preempted state law claims that a local union fraudulently induced a company to sign a collective bargaining agreement requiring pension, health, and welfare benefits. Twin City Bricklayers Fringe Benefit Funds v. Superior Waterproofing Inc. (June 7, 2006).

Overtime: An Ohio insulation contractor was liable for $95,000 in back pay because the "shop time" and travel time required of employees is payable work time since it was for the benefit of the employer. The Sixth Circuit Court of Appeals held that time employees spent waiting for assignments and driving to off-site jobs was compensable under the FLSA. Chao v. Akron Insulation & Supply Inc. (June 9, 2006).

Overtime: Three companies have agreed to pay $362,673 in overtime wages to 680 employees who were misclassified as independent contractors while working to rebuild casinos in the Gulf Coast region damaged by last year's hurricanes, according to a June 12 statement from the Department of Labor.

The department's Wage and Hour Division found that the three companies--Remza Drywall & Construction Inc. of Lewisville, Texas, Atlantida Construction Inc. of Duluth, Ga., and H & H LLC of Biloxi, Miss.--failed to pay employees one-and-one-half times their regular rate of pay for working more than 40 hours per week. According to DOL, all three firms misclassified employees as independent contractors and failed to pay the required overtime compensation.

The settlements covered 451 employees at Remza, 182 employees at Atlantida, and 47 employees at H & H. (June 15, 2006).

Race Discrimination: EEOC can prove that a Coca-Cola human resources official's decision to fire a black employee violated federal law—even though she did not know his race when she decided to fire him—by showing she relied solely on the tainted reports of his biased supervisor, the Tenth Circuit Court of Appeals holds in a case of first impression. EEOC v. BCI Coca-Cola Bottling Co. of Los Angeles d/b/a Phoenix Coca-Cola Bottling Co. (June 7, 2006).

Wal-Mart Sex Harassment: Wal-Mart Stores Inc. will pay a total of $315,000 to settle two separate sexual harassment lawsuits brought in central Florida, the Equal Employment Opportunity Commission announced June 1. Wal-Mart was alleged to have known about and allowed sexual harassment by its supervisors. (June 2, 2006).

Back Pay: The Labor Department June 1 launched its Web-based back wage employee locator that will allow workers to determine whether they are owed back wages based on an action brought by DOL. The locator guides individuals through a series of questions that helps them determine if they are owed back wages as a result of a Wage and Hour Division investigation, DOL says on its Web site. The database includes information about people who are owed back wages, as well as their employment histories. Click here to go to the locator. (June 2, 2006 ).

Retaliation Against Public Employee: The Supreme Court has held that when public employees make statements pursuant to their official duties, they are not speaking as citizens for First Amendment purposes, and the Constitution does not insulate their communications from employer discipline. Garcetti v. Ceballos, (May 30, 2006).

Wages: The U.S. Court of Appeals for the Eleventh Circuit has held that under the Fair Labor Standards Act, time spent traveling from the employer’s shop to a remote location is time that must be paid, even if in a company-owned vehicle. Burton v. Hillsborough County, Fla., (May 18, 2006).

Health Insurance/Reimbursement Agreements: The U.S. Supreme Court holds that "reimbursement agreements" are enforceable against health insurance plan participants in federal court. "Reimbursement agreements" require participants to repay their health insurance plan for their medical expenses if the injury was caused by a third party, and the participant receives damages from or on behalf of the third party. Sereboff v. Mid Atlantic Medical Services, Inc., (May 15, 2006).

Veterans Rights: The U.S. Court of Appeals for the Fifth Circuit decides that claims brought under the Uniformed Services Employment and Reemployment Rights Act (USERRA), which protects the employment rights of members of the armed forces, are subject to arbitration under the Federal Arbitration Act. Garrett v. Circuit City Stores, Inc. (May 11, 2006).

Pension: The Ninth Circuit has held that ERISA was violated by a pension plan's “phantom account” method for calculating pension benefits for rehired employees who had already received lump-sum pension distributions. ERISA's actuarial equivalency requirements were breached because the method impermissibly reduced pension benefits by more than the accrued pension benefit attributable to the earlier distributions. Miller v. Xerox Corporation Retirement Income Guarantee Plan, (May 8, 2006).

Overtime: The U.S. Court of Appeals for the Fifth Circuit has held that nurse practitioners and physicians assistants must be paid overtime under certain circumstances, and ordered the payment of back pay. Belt v. EmCare, Inc. (April 4, 2006).

Pension/401(k): The U.S. Court of Appeals for the Fifth Circuit holds that individuals may bring a class action alleging that the employer and other parties breached their fiduciary duties to a 401(k) plan, and that they need not first exhaust the plan's appeal procedures. Milofsky v. American Airlines, Inc. (March 2, 2006).

Wages/Overtime: The U.S. Supreme Court holds that time spent changing work clothes and traveling to a work station may be work time and that the employee must be paid for this time. IBP Inc. v. Alvarez (November 8, 2005).

Wages: New Orleans Fire Fighters win their long battle for back pay.

Pension: Former Schwegmann grocery workers win the right to pension benefits.

Top